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Case: 1:17-Cv-02298-JG Doc #: 67 Filed: 08/03/18 1 of 20 Case: 1:17-cv-02298-JG Doc #: 67 Filed: 08/03/18 1 of 20. PageID #: 570 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OHIO ----------------------------------------------------------------------- : KENNETH CHAPMAN, et al., : CASE NO. 16-CV-1114 Plaintiffs, : 17-CV-2298 : vs. : OPINION & ORDER : [Resolving Docs. No. 133, 135, 136] TRISTAR PRODUCTS, INC., : Defendant. : : ------------------------------------------------------------------------ JAMES S. GWIN, UNITED STATES DISTRICT JUDGE: The parties seek the Court’s approval of their proposed class settlement and attorney’s fee request.1 On July 12, 2018, the Court held a fairness hearing on the proposed class settlement and fee request. At that hearing, class counsel and defense counsel argued in favor of approving the settlement. However, the United States Department of Justice and a representative for eighteen State Attorneys General (collectively, the “Government Representatives”) argued against the settlement and accompanying attorney’s fee request.2 In objecting to the settlement, the Government Representatives mostly complain that Plaintiffs’ attorney fee application seeks too much. The Government Representatives posit that the settlement would have been greater if the attorney fee application had been lower. In response, Defendant Tristar represented that the attorney fee application was independent of the settlement amount and represented that Defendant Tristar would not pay any higher settlement regardless if the attorney fee application had been lower. No class members objected to the terms of the settlement or to the attorney’s fee request. For the following reasons, the Court APPROVES the class settlement, GRANTS IN PART the attorney fee request, and DENIES Ohio class counsel’s request for expenses. 1 Doc. 133 (motion for attorney fees); Doc. 135 (motion for class settlement approval). 2 Doc. 134 (United States); Doc. 136 (Eighteen State Attorneys General). Defendant Tristar responds. Doc. 140. Plaintiffs respond. Doc. 141. Case: 1:17-cv-02298-JG Doc #: 67 Filed: 08/03/18 2 of 20. PageID #: 571 Case No. 16-cv-1114 Gwin, J. I. Background A. Procedural History In May 2016, Plaintiffs sued Defendant Tristar Products, Inc. (“Tristar”). With this lawsuit, Plaintiffs allege that certain pressure cookers made by Tristar had a defect that allowed users to open the pressure cookers’ lids even though built-up pressure remained inside the pressure cooker.3 As a result, the heated contents of the pressure cooker would burst onto the user, potentially harming them.4 Plaintiffs alleged that this defect existed, despite Tristar’s insistence that these pressure cookers were especially safe and that the pressure cookers’ lids could not come off if pressure remained in the cooker.5 The majority of Plaintiffs’ claims survived Defendant’s motion to dismiss.6 The Court certified several state classes, but denied certification for Plaintiffs’ requested nationwide class.7 After litigating numerous motions in limine, the parties went to trial.8 On the first trial day, the parties completed voir dire and examined the Plaintiffs’ expert and two of the named Plaintiffs. During an afternoon break, the parties met with Magistrate Judge Greenberg and renewed earlier discussions regarding potential settlement. After additional negotiations, the parties reached the proposed settlement at issue here. While the Chapman litigation occurred in Ohio, there was also a California action, led by Plaintiff Pinon, dealing with the same alleged defect. After the Chapman Plaintiffs settled, Plaintiff Pinon transferred her case from California to this Court to join the settlement.9 Like the Chapman Plaintiffs, Plaintiff Pinon alleged that the lid-related defect existed in Tristar pressure cookers.10 3 See Doc. 1 at ¶ 4. 4 Id. 5 See id. at ¶¶ 21-25. 6 See Doc. 32. 7 See Doc. 69. 8 See e.g., Docs. 81, 97, 99, 117. 9 See Doc. 125. 10 See Doc. 1 (case No. 17-cv-2298). -2- Case: 1:17-cv-02298-JG Doc #: 67 Filed: 08/03/18 3 of 20. PageID #: 572 Case No. 16-cv-1114 Gwin, J. Although Plaintiff Pinon’s case was in an earlier stage than Chapman, the Pinon parties had begun discovery and litigated Defendant’s motion to dismiss to decision.11 Defendant Tristar has never admitted liability or conceded that their pressure cookers are defective in any way. B. Settlement Terms The parties’ proposed settlement applies nationwide to approximately 3.2 million Tristar pressure cooker purchasers. The settlement offers several types of relief to class members. Importantly, to obtain any other relief, class members must verify that they have watched or read a transcript of a safety video created to teach users the safe operation of their pressure cookers.12 Assuming they complete that step, class members can submit a claim to receive a $72.50 credit off of one of three Tristar products. These products are an updated version of the pressure cooker at issue here (arguably with a better latching lid mechanism), a power air fryer, or an induction cooktop set.13 Each of these products cost about $159.00,14 and class members must pay the difference between the product’s retail cost and the value of the credit, plus any shipping and handling fees.15 Further, class members must buy the product directly from Defendant Tristar and cannot combine the $72.50 credit with any other promotions Defendant Tristar may offer.16 The credit expires after ninety days.17 In addition to the $72.50 credit, the settlement gives class members a one-year warranty extension on class members’ Tristar pressure cookers. Defendant Tristar offers a similar six-year 11 See Doc. 26 (case No. 17-cv-2298). 12 Doc. 126-1 at 17, ¶ IV.B.1 (“To be eligible for the Benefits, the Settlement Class Member must verify that they have watched the Safety Video, which shall be no longer than three minutes, and timely submit a signed and completed Claim Form.”). 13 Id. at 4-5, ¶ I.O. 14 See Doc. 134-1; Doc. 134-3. 15 Doc. 126-1 at 4-5, ¶ I.O. 16 Id. 17 Id. -3- Case: 1:17-cv-02298-JG Doc #: 67 Filed: 08/03/18 4 of 20. PageID #: 573 Case No. 16-cv-1114 Gwin, J. warranty to all consumers for $30.00, and so the approximate value of the one-year warranty extension is $5.00.18 Under the settlement, Tristar also agrees to pay up to $890,000 in notice and claims administration costs.19 The proposed settlement also includes benefits unique to the named Plaintiffs. The named Plaintiffs agree to settle their personal injury and property damage claims with Defendant Tristar for $25,000.00 each.20 The named Plaintiffs may also seek an incentive award of up to $10,000 for their efforts in litigating the case.21 In exchange for these benefits, all class members agree to release all claims against Defendant Tristar relating to any alleged defects in the pressure cookers at issue here, including personal injury or property damage claims.22 Finally, as part of the settlement, Tristar agreed that it would take no position on class counsel seeking fees and expenses if those fees and expenses were less than approximately $2.5 million. C. Class Response to the Settlement The claims administrator estimates that settlement notice reached approximately 83 percent of class members.23 Additionally, the online safety video has been viewed over 31,000 times.24 As of the end of the claims period, class members had filed 13,174 claims.25 Only 137 class members asked exclusion from the class settlement.26 Ninety-nine of those exclusion requests came from class members who have a personal injury claim.27 No class members objected to the proposed settlement.28 18 See Doc. 134-1 at 4. 19 Doc. 126-1 at 17, ¶ III.c 20 Id. at 24, ¶ VIII.B. 21 Id. 22 Id. at 53-54. 23 Doc. 135-1 at 4. 24 Id. 25 Doc. 147 at 1-2. 26 Doc. 135-1 at 14. 27 Id. 28 Id. -4- Case: 1:17-cv-02298-JG Doc #: 67 Filed: 08/03/18 5 of 20. PageID #: 574 Case No. 16-cv-1114 Gwin, J. However, under CAFA,29 representatives from the United States Department of Justice and eighteen state attorneys general objected to the proposed settlement (together, the “Government Representatives”).30 Generally, the Government Representatives argue that the proposed settlement disproportionately benefits class counsel, and the named Plaintiffs to the detriment of other class members. Despite no class member objections, the Government Representatives acknowledge that if the lodestar fee calculation method is used, Plaintiffs’ counsel qualify for a fee award near the application amount. But the Government Representatives challenge whether the lodestar method can be used and argue that the attorney fees sought are disproportionate to the benefits received by class members. Acknowledging that settlement approval is independent of attorney fee approval, the Government Representatives then argue that lower attorney fees would necessarily result in a greater settlement for class members. The Government Representatives make this argument even though Tristar has no power to determine fee awards; even though Tristar represented to this Court that the class settlement would not change regardless what Plaintiff attorney fees are awarded; and even though party discussions on plaintiff fee awards occurred after the class settlement was reached. II. Legal Standard Courts in the Sixth Circuit reviewing a proposed class action settlement evaluate seven factors to determine whether the settlement is “fair, reasonable, and adequate.”31 These factors are: (1) the risk of fraud or collusion; (2) the complexity, expense and likely duration of the litigation; (3) the amount of discovery engaged in by the parties; (4) the likelihood of success on the merits; (5) the opinions of class counsel and class representatives; (6) the reaction of absent class members; and (7) the public interest.32 29 See 28 U.S.C.
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